Parliament Proposes 5% Withholding Tax on Land Sale Gains
By The Public Lens
Government has through parliament proposed to impose a five percent withholding tax on gains from land sold in cities and municipalities.
The same will apply to rental property and shares held in a private company.
The details are contained in clause 3 of the Income Tax Amendment Bill 2024 that was tabled before Parliament recently.
According to the Bill, taxpayers are required to remit this money to URA within 15 days after disposal of the assets or pay fines if the tax isn’t remitted within the stipulated period.
The bill also clarifies that incase of involuntary sell off of the assests forexample because of auction, court order , mortgages , divorce settlements or spousal seperation agreements and transmission of assets to trustees incase of death, the tax will be of non effect.
The Ministry of Finance has similarly tabled a bill proposing additional taxes on this like bottled water for drinking at 10 percent (75shillings) per litre .
Government additionally proposed to impose tax on fuel products like; Motor spirit (gasoline) with a rate of Shs1550 being proposed per litre, Gas oil (automotive, light, amber for high speed engine) and a rate Shs1230 per litre and Illuminating kerosene where Shs500 is proposed per litre.
The details are contained in the Excise Duty Amendment Bill 2024 that was tabled before Parliament by the Ministry of Finance.
